Aramark (NYSE:ARMK – Get Free Report) and Accel Entertainment (NYSE:ACEL – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.
Institutional & Insider Ownership
55.4% of Accel Entertainment shares are owned by institutional investors. 2.8% of Aramark shares are owned by company insiders. Comparatively, 14.5% of Accel Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk & Volatility
Aramark has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Accel Entertainment has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aramark | 0 | 2 | 12 | 0 | 2.86 |
| Accel Entertainment | 0 | 3 | 4 | 0 | 2.57 |
Aramark presently has a consensus price target of $69.14, suggesting a potential upside of 28.66%. Accel Entertainment has a consensus price target of $14.80, suggesting a potential upside of 38.64%. Given Accel Entertainment’s higher possible upside, analysts clearly believe Accel Entertainment is more favorable than Aramark.
Earnings & Valuation
This table compares Aramark and Accel Entertainment”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aramark | $18.51 billion | 0.77 | $326.39 million | $1.43 | 37.58 |
| Accel Entertainment | $1.33 billion | 0.65 | $51.47 million | $0.67 | 15.93 |
Aramark has higher revenue and earnings than Accel Entertainment. Accel Entertainment is trading at a lower price-to-earnings ratio than Aramark, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Aramark and Accel Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aramark | 1.93% | 17.68% | 4.21% |
| Accel Entertainment | 4.08% | 22.30% | 5.59% |
Summary
Aramark beats Accel Entertainment on 8 of the 14 factors compared between the two stocks.
About Aramark
Aramark provides food and facilities services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally. It operates through two segments, Food and Support Services United States, and Food and Support Services International. The company offers food-related managed services, including dining, catering, food service management, and convenience-oriented retail services; non-clinical food and food-related support services, such as patient food and nutrition, retail food, environmental services, and procurement services; and plant operations and maintenance, custodial/housekeeping, energy management, grounds keeping, and capital project management services. It also provides on-site restaurants, catering, convenience stores, and executive dining services; beverage and vending services; and facility management services comprising landscaping, transportation, capital program management, payment services, and other facility consulting services relating to building operations. In addition, the company offers concessions, banquet, and catering services; retail services and merchandise sale, recreational, and lodging services; and facility management services at sports, entertainment, and recreational facilities. Further, it offers correctional food; and operates commissaries, laundry facilities, and property rooms. It primarily serves business and industry, sports, leisure and corrections, education, healthcare, public institutions, manufacturing, transportation, service, and other industries. The company was formerly known as ARAMARK Holdings Corporation. Aramark was founded in 1959 and is based in Philadelphia, Pennsylvania.
About Accel Entertainment
Accel Entertainment, Inc., together with its subsidiaries, operates as a distributed gaming operator in the United States. It is involved in the installation, maintenance, and operation of gaming terminals; redemption devices that disburse winnings and contain automated teller machine (ATM) functionality; and other amusement devices in authorized non-casino locations, such as restaurants, bars, taverns, convenience stores, liquor stores, truck stops, and grocery stores. The company also provides gaming solutions to the location partners. In addition, it operates stand-alone ATMs in gaming and non-gaming locations, as well as amusement devices, including jukeboxes, dartboards, pool tables, and other related entertainment equipment. The company is headquartered in Burr Ridge, Illinois.
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